MSE News: Mortgages hikes after Yorkshire/Clydesdale Bank glitch

ianho_2

Stick with it Skyerocket,

If we're all victims of the same error then the outcome has to be the same for everyone surely?

I don't know how long you've been aware of the issue but mine came to light in October 2009, i'm still going to pursue the details behind the error because as far as i'm concerned i agreed to Yorkshire/Clydesdale's writing off of the £2,000+ shortfall via the Ombudsman with the proviso that my account was returned back to where it should have been and i'm not entirely convinced this is the case.

Wendy0224

Just rejected final offer from Clydesdale of £500 on a shortfall of £4500 across 3 tracker mortgages.

I registered the claim with the FOS and have sent off all the paprework.

I am determined to hold them to account. Will post the ombudsmans ruling as soon as I have it.

Keep on it everyone!

globetraveller

Good luck. Still waiting for them to get back to me with an offer, but I know what I want and doubt they will offer it.

crazycurls

We are caught up in this too. When we first took out the mortgage our company was doing well and we made overpayments for the first year thinking that this could help shorten the mortgage term or if the company had a slow period we would have a cushion built in.

What happened next was my husband had a stroke, and the company is now liquidated. My husband gets DLA ESA and I get carers allowance. We are really struggling to pay our mortgage and every week sell something else. All our tessas isas etc are now gone and our lifetimes savings nearly gone.

As we had the overpayment sat on our account we do not have a shortfall as such. It would have been about £2700 they gave us £250 and have now offered a further £300 which we are not happy with.


I want them to pay us back what would have been the shortfall amount. They have asked me what I want and I have said to be in the same position we would have been had they not messed up the payments.

We had the money then to make the payments and certainly would have. We have had various mortgages over the last 30+ years and have never been late or defaulted.Now every single penny counts £2700 represents months of our total income.

I wish I had put the overpayment money in a separate account now and not in the mortgage. They have said I can go to the FOS but what would I be asking for as there is no shortfall. My view is technically there is, in my book they have still caused me to loose the cushion I would have had.

Do you think I have a case for the FOS?

Wulfrune

RESULT !

I received a letter from the FOS this morning informing:

"I have reviewed Clydesdale's explanation in relation to the underfunding of your mortgage account. I am satisfied that the error arose as a consequence of an inaccuracy in the calcualting of the monthly payments, after a series of interest rates falls. I am also satisfied with the adjustment it made in relation to the interest difference.
However, I have not been provided with any evidence to indicate it would have been reasonable for you to have been alerted to the error. As a consequence I do not consider it reasonable for you to be liable for the underfunding shortfall.

As a result, I am of the opinion you complaint should succeed. After discussions with Clydesdale, it has now told us it would be prepared to write off 100% of the capital shortfall. It will restore your monthly payments to what they should be, had the error not occurred. This is in full and final settlement of your complaint.

IN OTHER WORDS

WULFRUNE 1

CLYDESDALE BANK 0

DO NOT GIVE UP..... THIS IS YOUR MONEY, YOU SHOULD FIGHT FOR YOUR RIGHTS

Wulfrune

P.S.

They took several months of payments from me at the higher rate......should I be entitled to that returned to me..... with interest?

motoko

Crazycurls, take a look at this link which was posted a page or two back:

Noble_Savage wrote: »

It can't be a coincidence that FOS chose to release this today.

It would suggest that even though you've made overpayments, the FOS would still expect the bank to write of the amount of the shortfall as if you hadn't made those overpayments.

globetraveller

Wulfrune wrote: »

RESULT !

I received a letter from the FOS this morning informing:

"I have reviewed Clydesdale's explanation in relation to the underfunding of your mortgage account. I am satisfied that the error arose as a consequence of an inaccuracy in the calcualting of the monthly payments, after a series of interest rates falls. I am also satisfied with the adjustment it made in relation to the interest difference.
However, I have not been provided with any evidence to indicate it would have been reasonable for you to have been alerted to the error. As a consequence I do not consider it reasonable for you to be liable for the underfunding shortfall.

As a result, I am of the opinion you complaint should succeed. After discussions with Clydesdale, it has now told us it would be prepared to write off 100% of the capital shortfall. It will restore your monthly payments to what they should be, had the error not occurred. This is in full and final settlement of your complaint.

IN OTHER WORDS

WULFRUNE 1

CLYDESDALE BANK 0

DO NOT GIVE UP..... THIS IS YOUR MONEY, YOU SHOULD FIGHT FOR YOUR RIGHTS

Wulfrune

P.S.

They took several months of payments from me at the higher rate......should I be entitled to that returned to me..... with interest?

great news! Can you tell me how much of a difference it makes in monthly repayments for you?
We have also made one payment at the higher rate and still have to get a decision from Clydesdale.

birdsong247

Wulfrune wrote: »

RESULT !

Wulfrune

P.S.

They took several months of payments from me at the higher rate......should I be entitled to that returned to me..... with interest?

firstly congrats !!!!

secondly, surely, having reduced the capital amount to date, then taken a higher amount for Aug & Sep (?) you are now ahead of your mortgage by x2 the difference between the higher and lower rate ?

our letter's with the FOS - but precedent set - lawyers at the ready

Skyerocket_2

Really pleased for you mate, its been a long battle!

I'm still waiting, the most recent info has been a letter from the ombudsman stating that due to the recent high volume of complaints there will be a delay in resolving my complaint with the Clydesdale...doh!

Still keeping everything crossed for a good outcome.

Clydefail

crazycurls wrote: »

They have said I can go to the FOS but what would I be asking for as there is no shortfall. My view is technically there is, in my book they have still caused me to loose the cushion I would have had.

Do you think I have a case for the FOS?

You defo have a case. The fos has produced guidance on this:

"Sometimes, unknown to the consumer, the underfunding has lengthened the mortgage term. Occasionally, this is counterbalanced by capital payments made by the consumer (perhaps from an inheritance or a redundancy payment) or by any regular overpayments they made. The consumer will have made these payments with the intention of shortening the original mortgage term. So we would not generally allow the amount the consumer paid in this way to reduce the normal calculation of compensation. Instead, we would be likely to ‘strip out’ the effect of the capital repayment or overpayments when calculating loss, by ‘modelling’ the mortgage account to ignore any extra payments made."

You have a £2700 case, and should take it to the FOS and imo reject the offer from clyesdale.